Buying a Sailboat - Title has 'CAUTION' on it.

[Sky Clipper]

Hello!

I am in the NE and am in the process of purchasing a ten-year old sailboat from someone across the State Boundary. I notice that the Title says "CAUTION: THE BOAT MAY BE SUBJECT TO OTHER FILED LIENS".

The boat has been with the previous owner for all of the ten years ever since he bought it from a Dealer. The boat has been maintained satisfactorily and all Marina dues etc. have been paid, being in only one region all the while.

I understand how liens work, but reading on the Internet, there are both ends of the spectrum where people warn to stay away from the deal, while others say that it is a general practice to have such a stamp on the Title when a Dealer has registered the boat.

I can not go around every Marina, Towing Company, Repair Shop, or Dock Facility to check if the boat is clear of liens, nor can I pay a lawyer to do this for me.

I am new to boat-buying and therefore my question to boat-owners here is if, in their experience, have they seen this notation on the Title often, or is it something out of the way, and how much trouble can it be to go ahead with the purchase?

The question really deserves to be in the Trading Forum, but I don't have a subscription set up for that yet.

Thank you for your advice!

SC

 

[berner73]

Is the boat currently registered with the State or documented with the CG?

 

[MrUnix]

In Florida, lien holder information is printed on the title. if there are no liens against the vessel, it simply states "None". All states are not the same however and you don't specify where you are located, so your state may be different.

Cheers,
Brad

 

[Sky Clipper]

Thanks for the response.

Boat is titled in NJ and is being bought to be titled in NY.

Boat is simply Titled and Registered with the DMV and is not Documented (w/USCG).

 

[Ron20324]

Boat is titled in NJ and is being bought to be titled in NY. Boat is simply Titled and Registered with the DMV .

You should be able go into the DMV and ask for a title search. Or, take the title (BEFORE YOU BUY THE BOAT) to the NJ DMV and they can run the title for you. Might be a 10-buck fee.

 

[Benny17441]

That is probably standard phraseology for "buyer beware" in their title documents. Your best course of action would be to contact the DMV and give them the number of title and indicate you may be purchasing the boat and ask if there are any liens recorded against it.

 

[Sky Clipper]

Thanks folks! Sounds like the right thing to do.
More at ease now!
Thx.

 

[NotCook]

Hey Sky, let us know how it turns out. Inquiring minds want to know...

 

[Steve Dion]

You can take you money to a title company for deposit. The owner can release the vessel when you have a clear title. He has his money and you have your boat.

I would check with your DMV about any possible liabilities even if they say the title is clear.

 

[JVB]

An Internet search for "boat title insurance" yields dozens of hits. If you are worried get boat or vessel title insurance.

 

[JRacer]

Probably should say, "CAUTION - This vessel will cause you to stand in a cold shower and tear up $100 bills"

Good luck with it!!

 

[Crazy Dave Condon]

Each state is different but if their were ever any liens on it, there may be a statuate of limitations for anyone wanting to file a lien. You may want to reseach that for NJ.

Crazy Dave Condon